Spring Release Preview 2 changes effective April 17, 2015

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1 March 13, 2015 Spring Release Preview 2 changes effective April 17, 2015 Each year, the payment networks typically introduce key changes in two major releases: Spring Release in April and Fall Release in October. These changes have the potential to affect how you accept payments and drive changes in doing so. As a preview of what s to come, we ve compiled a summary of the planned Spring Release changes that we ve received to date. We ve updated this document to include new information since the initial Spring Release preview was distributed. Updated information is identified by a red *. It s likely that the final Spring Release 2015 document will include new information not included in this second preview. Be sure to keep this preview and all other versions to follow in a safe location so that you can refer back to it when you need to. If you have any questions or concerns, please contact your Worldpay Representative. Page 1

2 Table of Contents VISA 3 New merchant category codes 3 Changes to corporate card interchange programs 4 Changes to purchasing card interchange programs 6 New - U.S. commercial card Large Ticket 8 New eligible select developing market MCC for CPS/Retail 2 Credit/Debit Interchange s 8 Automated fuel dispenser liability limit amount increase 8 ISA fee increase 8 MASTERCARD 9 New merchant category codes 9 Acquirer cross-border fees 9 Effective October Introduction of New 2 series BINS ( ) 9 MasterCard Interchange Rates and s* 10 New MCC Included in Consumer Loans Interchange Rate* 11 DISCOVER 12 New and updated merchant category codes 12 Interchange rates and fees 12 AMERICAN EXPRESS 13 Changes to the eligibility of licensed massage parlors and direct settlement 13 Page 2

3 VISA New merchant category codes Visa is introducing support of several new merchant category codes (MCCs) noted below. The categories support newly formed digital goods and legal gambling merchants. Digital goods MCCs MCC Merchant Type MCC Title 5815 Digital media, books, movies, music Digital goods media, books, movies, music 5816 Digital Games Digital goods games 5817 Digital Applications Digital goods applications (excludes games) 5818* Digital goods large digital goods merchant Large digital goods merchant *Merchants that process over 25 million Visa transactions annually Legal gambling MCCs (US region only) MCC Merchant Type MCC Title 7800 Gambling - governmentowned lotteries Government-owned lotteries 7801 Gambling - governmentlicensed on-line casinos Government-licensed on-line casinos (on-line gambling) 7802 Gambling - governmentlicensed horse/dog racing Government-licensed horse/dog racing Page 3

4 VISA Continued Changes to corporate card interchange programs Visa will be changing the names of 2 corporate card interchange fee programs as follows: Existing Corporate Card Changes to Corporate Card * Current Name Current descriptor New Name New descriptor Corporate Retail US CORP RTL 235 Corporate Card Present US CORP CP 235 Corporate Electronic with Data US CORP EL DATA 272 Corporate Standard with Data US CORP STD DATA 272 *All other requirements remain the same Additionally, Visa will be eliminating the Corporate Card Electronic. Transactions currently qualifying for US Corp Electronic will now qualify as US Corp Standard beginning in April. Please note the interchange rate will remain the same. That Will No Longer Apply That Will Apply Rate Rate Corporate Electronic US CORP ELEC % + Corporate Standard US CORP STD % + Page 4

5 VISA Continued Visa will also be eliminating the Corporate Card Business 2 Business (B2B). Transactions will qualify as Corporate Card Card Present or Card Not Present based upon the merit of each individual transaction. If the merchant s corporate transactions are card present there is a reduction in the interchange fees by.05%. If the merchant s corporate card transactions are card not present there is an increase in interchange fees by.10%. That Will No Longer Apply That Will Apply Rate Rate Corporate B2B US CORP B2B % + Corporate Card Present US CORP CP % + Corporate B2B US CORP B2B % + Corporate Card Not Present US CORP CNP % + Page 5

6 VISA Continued Changes to purchasing card interchange programs Transactions that currently qualify for purchasing card retail interchange will qualify for the new Card Fleet Interchange program effective in April. That Will No Longer Apply That Will Apply Rate Rate Retail RTL % + Fleet FLT % + Visa will be changing names for 2 Card Interchange s as follows: Existing Card Changes to Card * Current Name Current New Name New Retail RTL 238 Card Present CP 238 Electronic US PUR EL W/DATA 239 Standard US PUR STD DATA 239 with Data with Data *All other requirements remain the same Page 6

7 VISA Continued Additionally, Visa will be eliminating the Card Electronic. Transactions that currently qualify for Electronic will qualify at Standard beginning in April. Please note that the interchange rate will remain the same. That Will No Longer Apply That Will Apply Rate Rate Electronic ELEC % + Standard STD % + Visa will also be eliminating the Card B2B. Transactions will qualify for Card Card Present or Card Not Present based upon the merit of each individual transaction. If the merchant s corporate transactions are card present there is a reduction in the interchange fees by.05%, if the merchant s corporate card transactions are card not present there is an increase in interchange fees by.10%. That Will No Longer Apply That Will Apply Rate Rate B2B B2B % + Card Present CP % + B2B B2B % + Card Not Present CNP % + Page 7

8 VISA Continued New - U.S. commercial card Large Ticket Corporate card large ticket transactions will also qualify for the interchange program which is being renamed to Commercial Card Large Ticket. The current qualification criteria, fee program indicator () of 156, and rate of 1.45% + $35.00 will remain the same. New eligible select developing market MCC for CPS/Retail 2 Credit/Debit Interchange s With the introduction of the new Gambling MCCs, Visa is adding MCC Government- Owned Lotteries to be eligible for CPS Retail 2 Credit/Debit Interchange. The current rate for consumer credit transactions are 1.43% + $.05 and for prepaid and consumer debit transactions the current rate is.65% + $.15 with a $2.00 cap on the interchange fee. Automated fuel dispenser liability limit amount increase Visa is increasing the issuer liability limit amount for a $1 status-check transaction at automated fuel dispensers (AFDs) from $75 to $100. A $1 status-check authorization from an AFD will cover transaction amounts up to $100 (for all cards except Fleet, which will remain at $150); issuers will be liable for transactions up to this amount. For transactions over $100, issuers can initiate a chargeback under Reason Code 72 no Authorization as they do today for transactions exceeding $75. Note: This change applies only to Reason Code 72 chargebacks. The requirements for Reason Code 81 Fraud: Card-Present Environment remain the same. ISA fee increase The International Service Assessment (ISA) fee of.40% will be increasing to.80% for international Visa and Interlink transactions. This occurs when a merchant accepts a card that is issued outside the US region. Page 8

9 MasterCard New merchant category codes MasterCard is introducing new Merchant Category Codes (MCCs) for the gambling and digital goods industries. The new MCCs are: MCC MCC Description 5815 Digital Goods-Audiovisual Media Including Books, Movies, and Music 5816 Digital Goods-Games 5817 Digital Goods-Software Applications (Excluding Games) 5818 Digital Goods-Multi-Category 7800 Government Owned Lottery 7801 Internet Gambling 7802 Government Licensed Horse/Dog Racing Acquirer cross-border fees The cross-border transaction assessment fee - assessed on any transaction where the country code of the merchant does not equal the country code of the account number - submitted to MasterCard in US Dollars will increase from 0.40% to 0.60% of the transaction amount. For any cross-border transaction NOT submitted to MasterCard in US Dollars the assessment fee will increase from 0.80% to 1.0% of the transaction amount. Effective October Introduction of New 2 series BINS ( ) MasterCard will add a new 2 series BIN range ( ) to their existing BIN range ( ). The new 2 series BINs will be processed in the same manner as the existing BINs are today. Additional information regarding impact to merchants will be provided as it is made available by MasterCard. Page 9

10 MasterCard Continued MasterCard Interchange Rates and s* MasterCard is updating select Consumer Credit, Consumer Debit and Prepaid interchange rates. The tables below outline the rate changes. Consumer Credit CURRENT NEW CHANGE MC Category Worldpay Billing Stmt (%) Per Item (%) Per Item (%) Per Item Full UCAF US Full UCAF 1.68% $ % $ % $0.00 Full UCAF Enh US Full UCAF 1.83% $ % $ % $0.00 Full UCAF WRLD CRD FULL UCAF 1.87% $ % $ % $0.00 Full UCAF High Value Full UCAF 2.30% $ % $ % $0.00 Full UCAF WE Full UCAF 2.30% $ % $ % $0.00 Merchant UCAF US Merch UCAF 1.58% $ % $ % $0.00 Merchant UCAF Enh US Merch UCAF 1.73% $ % $ % $0.00 Merchant UCAF WORLD CARD UCAF 1.77% $ % $ % $0.00 Merchant UCAF High Value Merchant UCAF 2.20% $ % $ % $0.00 Merchant UCAF WE Mch UCAR 2.20% $ % $ % $0.00 Consumer Debit and Prepaid CURRENT NEW CHANGE MC Category Worldpay Billing Stmt (%) Per Item (%) Per Item (%) Per Item Full UCAF- Debit Full UCAF Debit 1.15% $ % $ % -$0.10 Full UCAF - Prepaid TBD 1.15% $ % $ % -$0.10 Merchant UCAF-Debit UCAF Debit 1.05% $ % $ % $0.00 Merchant UCAF-Prepaid TBD 1.05% $ % $ % $0.00 Emerging Markets- Debit* Emerging Markets- Prepaid * Emerging Mkts DB 0.80% $ % $0.15 ($2.00 max) TBD 0.80% $ % $0.15 ($2.00 max) -0.15% -$ % -$0.10 Page 10

11 MasterCard Continued *The new Emerging Markets interchange rate will apply to the following MCCs: 8211 Schools, Elementary and Secondary 8220 Colleges, Universities, Professional Schools, and Junior Colleges 8299 Schools and Education Services-not elsewhere classified 9211 Court Costs Including Alimony and Child Support 9222 Fines 9223 Bail and Bond Payments 9311 Tax Payments 9399 Government Services-not elsewhere classified 9402 Postal Services-Government Only New MCC Included in Consumer Loans Interchange Rate* The Unregulated Debit and Prepaid Consumer Loans interchange rate will now be available for MCC 6012 Merchandise and Services-Customer Financial Institutions, in addition to MCC 6051-Quasi-cash- Merchant, which is currently eligible for these interchange rates. Registration with MasterCard is required to be eligible for this interchange rate. Page 11

12 Discover New and updated merchant category codes Discover is adding new Merchant Category Codes (MCCs) noted below to support gaming and lottery: New MCC Description 7800 Government Owned Lotteries 7801 Government Licensed Online Casinos 7802 Government Licensed Horse/Dog Racing The description for the following MCC has been modified: MCC Old Description New Description 7995 Lottery Tckts, OTB, Etc. Betting (e.g., sportsbook/fantasy/social gaming; when regulated and not covered by other MCCs) Interchange rates and fees Discover is updating select debit card and prepaid card product Interchange rates and fees. Debit card products Interchange Current Rate New Rate PSL-Supermarket/Warehouse Clubs 1.02% + $ % + $0.16 PSL Retail 1.02% + $ % + $0.16 PSL Restaurants 1.19% + $ % + $0.16 PSL Card Not Present/Ecommerce 1.62% + $ % + $0.20 Key Entry 1.62% + $ % + $0.20 Mid Submission Level 1.72% + $ % + $0.20 Prepaid card products Interchange Current Rate New Rate Mid Submission Level 1.72% + $ % + $0.20 Page 12

13 American Express Changes to the eligibility of licensed massage parlors and direct settlement Licensed Massage Parlors (MCC 7297) will be eligible to take part in Worldpay s direct settlement program for American Express.* Supporting documentation must be provided as proof that the business provides therapeutic massage services. This means that eligible businesses can accept all the major card brands, including American Express, and receive: One Statement All transaction information appears in one place One Deposit Funds from all transactions are deposited together, in one account One Processing Relationship Customer support on any transaction, 24/7/365 Improved Cash Flow Funds received up to two days faster This direct settlement capability for American Express Card transactions lets Worldpay simplify card acceptance and bring value to our relationship with customers. Please contact your Worldpay representative if you have any questions. *In order to be eligible customers must process $1 million or less in American Express annual charge volume. Other eligibility requirements apply. Page 13